In 2020, facing the impact of the COVID-19 pandemic and the challenges of complex international situation, 3TREES stayed committed to its corporate culture and strategic priorities and achieved high-quality, high-speed and sustainable business growth.

Despite the challenge of the pandemic in 2020, 3TREES continued to register steady growth in main business and made rapid advances in corporate development. With a 58.86% year-on-year increase in R&D investment and 55.99% increase in employees, 3TREES delivered 8,200,228,400 yuan of operating revenue and 501,772,700 yuan of net profit attributable to shareholders of the listed company, up by 37.31% and 23.55% year-on-year, laying a solid foundation for the company’s future development.

In the first quarter of 2021, 3TREES recorded strong growth in main business, with 1,483,058,200 yuan of operating revenue, up 241.20% year-on-year; 8,067,000 of net profit attributable to shareholders of the listed company, reversing the negative results of the previous year. With consistent and stable high investment return, 3TREES has demonstrated its strength and value for investment, and delivered a perfect score-sheet to investors.

Ultimate products, R&D first. In 2020, 3TREES developed 288 new products, optimized 414 products, and upgraded the "Health+" product standards. The "Health+" products just launched have reached the standards of odor dissipation in 8 hours, and 3TREES’s entire product line of interior wall coatings is now odor-free. We continued to respond to users' demand for high-quality paint and took concrete steps to put the "Health+" concept into practice.

Retail upgrade and channel empowerment. In the interior wall coating business, 3TREES has refined the profit and operation models of partners, cultivated the sales channels, and vigorously developed new distributors. We have completed the deployment of the "6-in-1" one-stop system and horizontal channel network, made rapid progress in online digital marketing, conducted cross-over promotion with high-end brands, created a new marketing model of online livestream, and delivered initial results in retail transformation and upgrade.

In the engineering business, 3TREES has developed a notable competitive edge. Focusing on the core corporate value of "customer orientation", we have improved the “Refresh the City” solutions and the “6-in-1” product supply system at a faster pace. We have signed strategic cooperation agreements or established partnerships with the top 10 real estate companies in China, and the presence of 3TREES products in the projects of other top 100 real estate companies has been steadily increasing. At the same time, 3TREES is vigorously developing distribution channels and making efforts in application scenarios such as renovation of rundown areas, urban renewal, public buildings, schools, hospitals and factory buildings.

Upgraded system and touch-the-heart services. 3TREES has introduced the painting-decoration integration and “Refresh the City” services, and developed a 361° service system, with the aim of moving from a single coating manufacturer to a comprehensive service provider. With its one-stop services of green building materials, 3TREES aims to meet the diversified needs of refreshing the city, green campus, hospital, factory, underground space system and other channels. 3TREES's wholly-owned subsidiary 3TREES Decoration has developed a professional construction management system, with upgrade in the "Immediate Move-in" service system and new improvement in the one-stop and integrated product services, to further enhance consumers' shopping experience.

Lean production and fast delivery. Based on the information provided by the big data management platform, 3TREES has accelerated the deployment of the green supply chain, constructed a "bigger, faster, better and more economical" ecological supply chain, gradually built a multi-factory and multi-warehouse all-category supply chain network, and applied data and intelligent technologies to the supply, manufacturing and sales information generated in production, and achieved fast, effective and personalized product supply. 3TREES attaches high importance to the construction of green ecological system. 3TREES’s Putian factory has been awarded as a national green factory, and 3TREES factories in Sichuan and Anhui have also been approved as green factory in their respective province. 3TREES has accelerated the deployment of green supply chain, improved and optimized the 9 production bases in Fujian, Sichuan, Anhui, Hebei, Tianjin, Henan, Hubei Dayu, and Guangdong Qingyuan, and several new production bases are now under construction. In addition, 3TREES has established a network consisting of hundreds of affiliated factories, planned new material factories, introduced the 3+X delivery management model, and continuously improved the supply chain system to enhance customer satisfaction of the delivery service.

Brand expansion and public welfare innovation. 3TREES contributes to the cause of public charity mainly through the 3TREES Charitable Foundation, which donated 24,396,200 yuan during the reporting period. The 3TREES Charitable Foundation has participated in the "100 enterprises for 100 villages" poverty alleviation program, and continued to make donations for the 3TREES public welfare forests and other public welfare campaigns.

In terms of brand development, focusing on the three major themes of “value”, “collaboration” and “growth”, 3TREES released the video series "Refresh the City", hosted live broadcast “The Power of Design”, attended the China Coatings Show and other exhibitions, conducted cross-border marketing, launched the 3TREES promotion film in season two of the documentary series the Growing of the Great Brand, and held the 3TREES Healthy Paint Live Festival.

Intelligent system construction and information support. The year 2020 marked a new stage of digital transformation for 3TREES. Through the deep application of the intelligent manufacturing system in Sichuan, Anhui, Hebei, Dayu and other factories, the efficiency of logistics and stock sorting has improved by 118%. Following the Industry 4.0 standard, 3TREES has constructed a completely digital green production system in the Hubei factory through the application of big data, Internet of Things and intelligent manufacturing system, which is a milestone in 3TREES’s plan for building "unmanned factories".

In 2021, focusing on the themes of "scale", "efficiency" and "cost", 3TREES will continue to develop innovative products with the craftsmanship spirit, improve the multi-channel structure, promote the upgrade in all channels, and reconstruct the retail business model. We will continue to push forward the construction of production bases, strengthen brand management and customer research, upgrade the mechanism of synergy and symbiosis with customers, improve the company’s competitiveness in all dimensions, and create greater value for employees, customers, the company and the society.